Two decades after the closure of Century Mill, the BMC is set to approve a massive redevelopment plan that will provide modern housing for 476 worker families and generate ₹1,351 crore for the civic body.

  • 476 tenements will be replaced with modern 300-400 sq ft flats.
  • Developer Peddar Realty will pay ₹1,351 crore to the BMC.
  • The Supreme Court ruling in January 2025 cleared the long-standing legal deadlock.
  • The project involves replacing 21 aging buildings with luxury residential towers.

In a landmark move for Mumbai's urban landscape, the Brihanmumbai Municipal Corporation (BMC) is moving forward with the redevelopment of the prime Century Mill plot in Worli. This decision comes nearly 20 years after the mill ceased operations, finally offering a solution to the families of former workers living in dilapidated tenements.

The redevelopment proposal, which is scheduled for final clearance by the BMC House, envisions transforming the aging industrial site into a modern residential hub. Under the agreement, Peddar Realty, the selected developer, will construct high-rise towers. While approximately 500 flats measuring between 300 to 400 sq ft are earmarked for the rehabilitation of the existing 476 families, the remaining inventory will be sold at market rates to ensure project viability.

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Historical Background and Legal Battle

The journey to this redevelopment has been fraught with legal complexities. The land was originally owned by the BMC and leased to the Century Spinning and Manufacturing Company in 1927 at a nominal annual rent of Re 1. Although the lease expired in 1955, the ownership status remained a subject of intense litigation for decades.

The deadlock intensified in 2006 when the mill suspended operations. Following a series of legal battles, the Supreme Court of India delivered a decisive ruling in January 2025, stating that the BMC was not obligated to transfer the land to the company. This verdict effectively paved the way for the current redevelopment drive.

Why This Matters

BozokMedia analysis shows that this project represents a critical intersection of social rehabilitation and urban monetization. For the mill workers, it is a matter of basic dignity and modern living standards; for the BMC, it is a massive windfall, as the ₹1,351 crore payout significantly exceeds the current estimated land value of ₹660 crore.

The resolution of the Century Mill dispute marks the end of an era and the beginning of Mumbai's hyper-modern residential evolution.

However, the project is not without controversy. Opposition leaders, including Congress's Ashraf Azmi, have raised concerns regarding the valuation. Azmi has argued that the potential development value of the land, given its Floor Space Index (FSI), could reach as high as ₹13,000 crore, suggesting the BMC might be underselling a massive opportunity.

Did You Know?: The original lease for the Century Mill land was signed in 1927 for a mere Re 1 per year!

Frequently Asked Questions

Q1: What are the specifics of the rehabilitation plan?
A: The 476 existing families will receive new homes ranging from 300 to 400 sq ft, equipped with modern civic amenities.

Q2: Who is the developer for this project?
A: Peddar Realty has been selected as the successful bidder for the redevelopment of the Century Mill plot.